Cory Raxton essay
Question #2: Describe how a business (including retail and service) can derive promotional and customer loyalty/retention benefit by utilizing a raffle in their marketing efforts.
Since the beginning of time, exchange has been a method of achieving desired results. Even before printed currency, commodities such as animals and metals have been traded for products of desire. This is all based on the principle of scarcity. There is a limited amount of resources with an unlimited amount of desire. Therefore, the necessity for trade is unavoidable. Because of this rationale, any chance at a “raffle” or upper hand in these types of exchanges is deemed quite valuable based on the level of promotion and product.
A raffle is essentially a method utilized by groups and organizations to promote the products produced and displayed by the company. The purpose of this method is to create a buy in to the product through the chance of receiving a sample item free of charge or for a discounted price while promoting the company or organization brand.
The goal of a business is to expand its consumer pool as much as possible within the guidelines it creates based on the target audience and demographic data. A raffle can be used to gather all this information. Through a raffle, information can be gathered about the individuals who are most interested in a product from age range to geographic location. This information can be used to construct methods to deliver these products to these groups through the maximization of promotion in these realms.
In any significant business the key to success is creating a buy in from consumers, maintaining these individuals’ consumption and expanding this to other individuals. Because of this, customer service is very important to be cognizant of when constructing a business plan. Often, the intangibles are what retain customers. In many markets where there are very similar products such as cell phone, customer experience through service from the provider plays a key role in volume of sales along with maintaining continued partnership between the company and the consumers.
A method that has been very successful for companies like Supreme and Yeezy sneakers is managing the product in a way that increases demand by limiting the volume produced. When quantity is limited, more people want them because they are harder to ascertain and in turn seen as more valuable. Supreme clothing and Yeezy shoes are sold every day for sometimes four times the value of retail price. This is because a demand for the product based on celebrity endorsement drive them to higher levels. This is the case with designer products as well in some cases. It is widely believed that the high price for these products is the material they are made from, but the brand is the real money maker. For example, individuals often buy Gucci products because it gives the sense of status vs. the actual materials they are produced.
Promotion can happen through various methods. There are expensive as well as free avenues that can both prove to be very effective. One free method could be word of mouth which ties into the strong customer service aspect. When individuals receive satisfactory experiences with a product or employee they are more likely to recommend it to other individuals in their circle that will do the same and vice versa. A raffle also falls into the free promotion category. The raffle can be handled in several different ways. Some of which can still create buy in and possibly increase profit. For example, there can be a raffle that promises the winner a free t-shirt from a clothing store with the purchase of a $20 product. This follows raffle protocol because it is a promotional tool to give back to supporters of the business while still encouraging spending money at the institution. This strays from the stereotypical raffle method where a lucky contestant wins a free product and that is the end of the transaction. If you draw in customers to your company, they may decide to purchase more than $20 worth of products during their visit. Ultimately, it is all about maximizing the experience to create the highest level of customer satisfaction to keep them coming back for more. That is how to create a business empire and prosper for years to come.
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